Capital Allowances Act 2001 section 250A

EEA furnished holiday lettings businesses

Section 250A sets out how capital allowances and charges are to be dealt with where a person carries on an EEA furnished holiday lettings business.

• Where a qualifying activity is an EEA furnished holiday lettings business, any capital allowance or balancing charge must be included in computing the profits of that business.
• An allowance is treated as an expense of the business, reducing its taxable profits.
• A balancing charge is treated as a receipt of the business, increasing its taxable profits.
• For the purposes of loss relief and other related provisions, the letting of EEA furnished holiday accommodation is treated as if it were a trade.